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> Appeal on property stamp duty

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TSskylightlava
post Oct 3 2017, 11:28 PM, updated 7y ago

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Anyone here appeal the stamp duty on property valuation before?

I bought an apartment for $460k but the stamp duty is charged on valuation price of $540k. What is the procedure and success rate of the appeal?

Thanks,

mini orchard
post Oct 4 2017, 07:24 AM

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Stamp duty is levied on the amount which is higher.

The SNP price may not be the figure in their database. Sometimes there are buyers/seller who wants a lower figure in the SNP than the actual transacted price for only 1 reason.....which is against the law ... cheating for stamp duty/rpgt purpose. That is why the govt would do their own valuation.

A lower purchase price stated may not be an advantage to the buyer if he sells the property within 5 years due to rpgt unless he elects for 1 time exemption if is a residential property.

A person can appeal with a copy of the bank valuation report but then it is not a must the IRB will agreed to the price.

This post has been edited by mini orchard: Oct 4 2017, 07:27 AM
TSskylightlava
post Oct 4 2017, 08:44 AM

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QUOTE(mini orchard @ Oct 4 2017, 07:24 AM)
Stamp duty is levied on the amount which is higher.

The SNP price may not be the figure in their database. Sometimes there are buyers/seller who wants a lower figure in the SNP than the actual transacted price for only 1 reason.....which is against the law ... cheating for stamp duty/rpgt purpose. That is why the govt would do their own valuation.

A lower purchase price stated may not be an advantage to the buyer if he sells the property within 5 years due to rpgt unless he elects for 1 time exemption if is a residential property.

A person can appeal with a copy of the bank valuation report but then it is not a must the IRB will agreed to the price.
*
thanks for your explanation.
megahertz
post Oct 4 2017, 08:50 AM

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QUOTE(skylightlava @ Oct 3 2017, 11:28 PM)
Anyone here appeal the stamp duty on property valuation before?

I bought an apartment for $460k but the stamp duty is charged on valuation price of $540k. What is the procedure and success rate of the appeal?

Thanks,
*
u should be bought under MV property rite ?

last year i did bought an under MV props, SNP price is under MV, my lawyer give quotation of stamp duty i need to pay based on the valuation price that did by JPPH which is around MV.

i just pay since that the flow, never did appeal before.


TSskylightlava
post Oct 4 2017, 10:45 AM

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QUOTE(megahertz @ Oct 4 2017, 08:50 AM)
u should be bought under MV property rite ?

last year i did bought an under MV props, SNP price is under MV, my lawyer give quotation of  stamp duty  i need to pay based on the valuation price that did by JPPH which is around MV.

i just pay since that the flow, never did appeal before.
*
As I'm a first time home buyer, if fall below 500k Im entitled 50% rebate. Now, no longer applied, end up paying much more. That's real bummer.
mini orchard
post Oct 4 2017, 10:58 AM

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QUOTE(skylightlava @ Oct 4 2017, 10:45 AM)
As I'm a first time home buyer, if fall below 500k Im entitled 50% rebate. Now, no longer applied, end up paying much more. That's real bummer.
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In life you cannot always get the best of all ..... market is imperfect.
oxm8
post Oct 4 2017, 08:02 PM

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QUOTE(skylightlava @ Oct 4 2017, 10:45 AM)
As I'm a first time home buyer, if fall below 500k Im entitled 50% rebate. Now, no longer applied, end up paying much more. That's real bummer.
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you are lucky. u bought a below below mv property instead!
chiahau
post Oct 5 2017, 10:33 AM

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QUOTE(skylightlava @ Oct 3 2017, 11:28 PM)
Anyone here appeal the stamp duty on property valuation before?

I bought an apartment for $460k but the stamp duty is charged on valuation price of $540k. What is the procedure and success rate of the appeal?

Thanks,
*
Can try to appeal then don't have high hopes for it.

They usually won't revise the ad valorem stamp duty for you.
TSskylightlava
post Oct 5 2017, 03:05 PM

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QUOTE(chiahau @ Oct 5 2017, 10:33 AM)
Can try to appeal then don't have high hopes for it.

They usually won't revise the ad valorem stamp duty for you.
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ok thanks.
-/00\-
post Oct 8 2017, 04:46 PM

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Try to appeal and submit together with valuation report. Sometimes it's a mistake from JPPH. Ada try ada chance..
chiahau
post Oct 9 2017, 03:39 PM

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QUOTE(-/00\- @ Oct 8 2017, 04:46 PM)
Try to appeal and submit together with valuation report. Sometimes it's a mistake from JPPH. Ada try ada chance..
*
Valuation of JPPH and IRB is different btw. I don't think IRB uses JPPH's valuation in their calculation for stamp duty.

Thus the term, ad valorem.

IRB usually values it on the higher side, sadly.
mini orchard
post Oct 9 2017, 08:56 PM

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QUOTE(chiahau @ Oct 9 2017, 03:39 PM)
Valuation of JPPH and IRB is different btw. I don't think IRB uses JPPH's valuation in their calculation for stamp duty.

Thus the term, ad valorem.

IRB usually values it on the higher side, sadly.
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What is IRB reference for stamp duty calculation then?
jetwash
post Oct 11 2017, 01:35 PM

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QUOTE(mini orchard @ Oct 9 2017, 08:56 PM)
What is IRB reference for stamp duty calculation then?
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Hopefully not by the asking price at mudah.my or propertyguru doh.gif
edyek
post Oct 12 2017, 08:27 PM

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QUOTE(chiahau @ Oct 9 2017, 03:39 PM)
Valuation of JPPH and IRB is different btw. I don't think IRB uses JPPH's valuation in their calculation for stamp duty.

Thus the term, ad valorem.

IRB usually values it on the higher side, sadly.
*
The instrument i.e. Transfer is lodge to IRB which IRB then forwarded it to JPPH for valuation. Then JPPH will do a valuation and forward back the valuation to IRB, which IRB will issue a notice of "DUTI AD VALOREM" (which determines the stamp duty).

The amount difference in stamp duty are usually due to JPPH valuation.

1)
Latest Transacted Price : 500k. Stamp duty : RM 9k
JPPH Valuation : >RM 500k. Adjust accordingly
SPA Price : RM 450k. Stamp duty : RM 8k

Whichever is higher. So have to pay RM 9k.

2)
Latest Transacted Price : 500k. Stamp duty : RM 9k
JPPH Valuation : >RM 500k. Adjust accordingly
SPA Price : RM 600k. Stamp duty : RM 12k

Whichever is higher. So have to pay RM 12k.

Like someone mention, one can always appeal the valuation. But if the property value are too small, no point go waste time and appeal value lah... Just pay loh.

Unless talking about a few mil props, then yes. Can try appeal.
TSskylightlava
post Oct 22 2017, 11:04 PM

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QUOTE(edyek @ Oct 12 2017, 08:27 PM)
The instrument i.e. Transfer is lodge to IRB which IRB then forwarded it to JPPH for valuation. Then JPPH will do a valuation and forward back the valuation to IRB, which IRB will issue a notice of "DUTI AD VALOREM" (which determines the stamp duty).

The amount difference in stamp duty are usually due to JPPH valuation.

1)
Latest Transacted Price : 500k. Stamp duty : RM 9k
JPPH Valuation : >RM 500k. Adjust accordingly
SPA Price : RM 450k. Stamp duty : RM 8k

Whichever is higher. So have to pay RM 9k.

2)
Latest Transacted Price : 500k. Stamp duty : RM 9k
JPPH Valuation : >RM 500k. Adjust accordingly
SPA Price : RM 600k. Stamp duty : RM 12k

Whichever is higher. So have to pay RM 12k.

Like someone mention, one can always appeal the valuation. But if the property value are too small, no point go waste time and appeal value lah... Just pay loh.

Unless talking about a few mil props, then yes. Can try appeal.
*
As this is my first property, if valued below $500k I was entitled for 50% stamp duty rebate. Property agent and lawyer didn't tell me about valuation based on market value as well. So the difference is quite a sum as I'm not entitled for rebate anymore.

 

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